A good franchise growth rate depends on two things: how large the system is and which industry it operates in. A system that adds 20 units grew 50% if it started the year with 40 locations and 0.5% if it started with 4,000. The headline number is identical. The story behind it is not.
FDD Item 20 gives you the raw material to make that comparison. Each franchisor reports outlet counts for the last three fiscal years, so growth can be calculated for any system that files. This article covers how to calculate it, which measure to use, and how to benchmark a system against real data.
How Franchise Unit Growth Is Calculated
Franchise unit growth measures the change in a system's outlet count between two dates. The outlet counts come from Item 20 of each franchisor's FDD.
Net unit growth = ending units minus starting units
Percent growth = net unit growth divided by starting units, multiplied by 100
Net units show how much development a system completed. Percent growth shows pace relative to size, which makes it the more accurate measure when comparing systems of different scales. The two figures often point in different directions.
These rows come from Franchimp's Franchise Development League Table, ranked by net growth for the 2026 filing year:
| Rank | Franchisor | Industry | Start Units | Net Growth | End Units |
|---|---|---|---|---|---|
| 1 | AFC Food Service Counters | Food & Beverage | 485 | +330 | 815 |
| 2 | Renegade Insurance | Professional Services | 1 | +44 | 45 |
| 3 | Circle K | Food & Beverage | 4,631 | +42 | 4,673 |
| 4 | Big O Tires | Auto & Travel | 461 | +9 | 470 |
| 5 | Nathan's Famous | Food & Beverage | 73 | +5 | 78 |
| 6 | The Melting Pot | Food & Beverage | 89 | +4 | 93 |
| 7 | The Doan Group | Professional Services | 26 | +2 | 28 |
| 8 | Aira Fitness | Health & Fitness | 2 | +2 | 4 |
| 9 | Nathan's Famous Branded Menu Program | Food & Beverage | 74 | +1 | 75 |
Source: Franchimp Franchise Development League Table, 2026 filing year, viewed October 12, 2026. Early access data and rankings may change.
Why Net Growth and Percent Growth Tell Different Stories
Circle K added 42 net units and grew 0.9%. Nathan's Famous added 5 net units and grew 6.8%. One brand did eight times more development work. The other grew at seven times the rate.
Renegade Insurance added 44 units from a starting base of 1, a figure that looks dramatic in percentage terms but reflects a system in its first year of active franchising rather than a mature expansion pattern.
Aira Fitness doubled its unit count from 2 to 4. That 100% growth rate is technically accurate and practically uninformative until the system has more operating history behind it.
This is why benchmarks need a size filter. A 60-unit system comparing its percent growth to a 4,000-unit system is not looking at peer data. Group by system size first, then compare growth rates within the same band.
Fitness: A Full Industry Benchmark
Franchimp's analysis of nine fitness franchise FDDs from 2024 and 2025 filings shows what a full industry picture looks like across brands of different sizes. Three-year unit change runs from -18.9% to +227.7%.
| Brand | Start Units | Net Change | Percent Change |
|---|---|---|---|
| StretchLab | 148 | +337 | +227.7% |
| Club Pilates | 660 | +369 | +55.9% |
| F45 Training | 597 | +154 | +25.8% |
| Planet Fitness | 2,050 | +405 | +19.8% |
| Pure Barre | 598 | +19 | +3.2% |
| Orangetheory Fitness | 1,247 | +36 | +2.9% |
| Gold's Gym | 166 | -7 | -4.2% |
| Snap Fitness | 629 | -119 | -18.9% |
Source: Fitness Franchise 2026: What 9 FDDs Actually Reveal, Franchimp, May 12, 2026.
The midpoint across these eight brands sits around 11.5%. A system at 3% and a system at 25% sit inside the same industry. Both numbers are real. Neither one is the benchmark for the other.
How to Read the Trend, Not Just the Total
A three-year cumulative gain can hide what happened in the most recent year.
Orangetheory Fitness shows a net gain of +36 units across the full disclosed window. That number looks flat but misses the direction: the system peaked at 1,311 units and has since pulled back to 1,283. The recent trend is contraction, not stability.
F45 Training shows a net gain of +154 units across the same window, but peaked at 789 and has since declined to 751. A cumulative positive and a current downward trend exist in the same data set. The full fitness franchise breakdown covers both brands in detail.
The latest year alone is not enough either. Coverall sold 329 new franchises in fiscal 2025 and its franchised outlet count still rose by only 81 units, because closures offset new openings for two consecutive years before that. Franchises sold and net units open are different numbers, and the gap between them tells you something about system stability.
Read the three-year trend first, then check the most recent year against it. A system that grew consistently for two years and then pulled back is different from one that has been flat throughout.
How to Use Growth Benchmarks
Franchisors and development teams
Calculate net units and percent growth for each of the last three years from your own Item 20, then compare each year against systems in the same industry and size band. Track openings and closures as separate figures. A flat net result can come from strong sales offset by closures, and the fix for each situation is different.
Franchise buyers
Read the three-year trend in Item 20 before looking at the most recent year alone. Check the closures, terminations, and non-renewals behind the net figure separately. Net growth numbers can flatten or obscure high turnover within the system. If you are evaluating startup costs alongside growth, a shrinking system with a high initial investment is a different risk profile than a growing one at the same price point.
Frequently Asked Questions
What is a good franchise growth rate?
It depends on the system's size and industry. In Franchimp's nine-brand fitness analysis, three-year unit change ran from -18.9% to +227.7%, and the midpoint across eight brands with complete data was around 11.5%. Compare a system against peers of similar size in the same industry rather than applying one number across all franchise categories.
How do you calculate franchise unit growth?
Subtract starting units from ending units to get net unit growth. Divide that figure by starting units and multiply by 100 for percent growth. Item 20 of the FDD supplies the outlet counts.
Where do franchise growth numbers come from?
From Item 20 of each franchisor's Franchise Disclosure Document, which reports how many units opened, closed, or transferred across the last three fiscal years.
Is net unit growth the same as franchises sold?
No. Franchises sold are not all open yet, and closures reduce the count independently. Coverall sold 329 new franchises in fiscal 2025 and its franchised outlet count rose by 81 units that year. The difference reflects closures and units still in the pipeline.
Compare Any System Against Its Peers
Franchimp's Franchise Development League Table shows each system's start units, net growth, and end units ranked by development performance. Premium filters let you narrow by system size, geographic footprint, industry, and Item 19 disclosure status, so you can check a system's growth against peers of the same size and category.